Unfair settlement trick

I hate to say it but you should always get it in writing first. Not in writing no deal! Send them a certified letter stating that you were told this was a settlement and you are refusing to pay the difference and that you are filing a complaint against them with the FTC.

Also to be safe I would close that debit card and get a new one. You broke one of the cardinal rules regarding collection agencies. Never give them an account number. They can go into your account and clean you out.

Frogpatch is right. NEVER make a settlement or any "deal" with a collector that is not in WRITING and certified mail. When you and they verbally agreed is when you should have had them put that entire understanding in writing and send it to you and THEN you send them the settlement payment.

Not sure about your state, but here in Texas they cannot garnish your pay and they cannot take your home, etc. for debts. Indeed, every state has a statute of limitation on debt (seems that most people don't realize that). In Texas, if a debt is outstanding for 4 years, it is legally disolved and you no longer owe it. In some states the statute of limitations on debt is as little as 3 years. Don't let collectors BS you--do some research, arm yourself!

Larry....a few points here

1) this tread is a year old
2)If a creditor has obtained a judgement, then they have the ability to levy bank accounts so there are ways around wage garnishments for judgement creditors.
3) you are correct that the SOL in TX is 4 years
4) you are INCORRECT in your assumption that expiration of SOL disolves(extinguishes) the debt. SOL is an affirmative defense to a civil suit only. An unpaid debt never goes away unless you live in one of the 2 states that have a Statute of Repose (MS & WI). In those 2 states only does expiration of SOL extinguishes the debt.

Thanks for the response (never noticed the age of the thread).

Regarding your second point, I assume you are right, but there are ways around the levying of bank accounts if need be; my main point was just that collectors will lie assiduously and threaten to do things they cannot do, so educating and arming oneself is essential.

While your 4th point is probably technically correct, my understanding is that if anyone tries to sue you for a debt more than 4 years old in Texas, you need only respond to the court that the statute of limitations has run out and the case must be dismissed (as must all cases pursued after an applicable statute of limitations). Perhaps the better way for me to have put it is to say that the statute of limitations prevents collection of the debt, but in practical effect the result is the same (that is, legally, you no longer have to pay the debt).

hey larry, your point about collectors is true they will say anything to get you to pay your bill. (wait a minute you mean there asking you to do something that you knew you should have done on your own) Collectors are the nessesary evil our society created, If you owe a debt treat it like the money is owed to you and I bet all the people on this site would be singing a diffrent tune!!!

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